Disability insurance is an essential coverage that protects your income when an injury or illness prevents you from working. As experts in the field, Florida Healthcare Insurance is well-positioned to guide you through the process of finding the best disability insurance companies in 2023.
A disability insurance quote doesn’t have to be difficult.
In this blog, we will review the top providers, discuss different types of coverage, and answer some common questions about disability insurance.
Best for Risky Occupations: Assurity
Assurity is a standout company for individuals working in risky occupations. They offer comprehensive coverage, competitive rates, and have a reputation for excellent customer service.
Their disability insurance policies are designed to protect those who work in industries with a higher likelihood of experiencing accidents or illnesses that may prevent them from earning a living.
With Assurity, you can rest assured that your financial needs will be met should the unexpected happen.
Is There Disability or Paycheck Insurance For Self Employed?
Yes, individual disability insurance is available for self-employed individuals. In fact, it’s even more important for freelancers and business owners to secure this coverage because their income is often less stable than that of salaried employees.
A self-employed person can choose between an individual disability policy or a business overhead expense policy to help cover the cost of running their business during their absence.
The benefit period is the length of time your disability insurance policy will pay benefits while you’re unable to work. It can range from a few months to several years, depending on the policy.
Generally, longer benefit periods come with higher premiums, but they also provide more extended financial protection. When choosing a policy, consider your financial needs and how long you would need support if you were to become disabled.
Insurance companies classify occupations into different risk categories, which can impact policy options and premiums. High-risk jobs typically come with higher premiums due to the increased likelihood of a claim.
It’s essential to work with an insurance agent who understands your specific occupation class and can help you find the best policy for your needs. You’ll want to access your working years and the potential for lost income due to not having long term disability coverage.
Types Of Disability Income Insurance Coverage
There are two primary types of disability insurance coverage: short-term and long-term. Short-term policies usually provide benefits for three to six months, while long-term policies can last several years or until retirement age.
It’s crucial to understand the differences between these two types of coverage and choose the one that best fits your needs and financial situation.
Quick Insurance Company Review
To help you in your search for the best disability insurance companies, we have compiled a brief review of some top providers in 2023:
- Assurity – Best for risky occupations, competitive rates, and excellent customer service.
- Guardian Life – Known for their flexible policy options and excellent financial ratings.
- Mutual of Omaha – Offers a wide range of coverage options and customization features.
- Principal Financial Group – A top choice for white-collar professionals and high-income earners.
Each carrier has its pros/cons depending on the customer’s job and disability benefit. You can try and get a disability insurance quote online, but most will offer very little value.
Our recommendation is not to shop for a disability policy online but rather call our agency. This is true for supplemental coverage as well.
What Does the Best Disability Policy Cover?
A comprehensive disability insurance policy should cover the following:
- Partial or total disability – A policy should provide benefits for both partial and total disabilities, ensuring you receive support no matter the severity of your condition.
- Non-cancelable and guaranteed renewable – This guarantees that your policy cannot be canceled, and your premiums won’t increase as long as you pay on time.
- Cost-of-living adjustment (COLA) – This rider helps your benefits keep up with inflation during your disability period. Costs are only going up-so should your benefit options.
- Future purchase option – This allows you to increase your coverage as your income grows, without undergoing additional medical underwriting.
Can You Get Disability Coverage Without a medical exam?
In some cases, you may be able to obtain disability coverage without undergoing a medical exam. This is called “simplified issue” or “guaranteed issue” disability insurance.
While these policies are typically more expensive and offer lower benefit amounts, they can be a good option for those with pre-existing conditions or who are unable to pass a medical exam. Remember disability quotes are just quotes- you won’t know the final rates until the Insurance company issues the plan.
Keep in mind that not all insurers offer this type of coverage, so it’s essential to work with an experienced agent who can help you find a suitable policy.
Residual Income Rider
A residual income rider is an optional add-on to your disability insurance policy that provides partial benefits if you’re able to work but are experiencing a loss of income due to your disability. This rider is particularly valuable for those who may be able to return to work in a limited capacity or have fluctuating income levels.
Adding a residual income rider to your policy can help ensure you have financial support during your recovery or if your disability impacts your ability to earn a full income.
In terms of optional riders that protect your income and lost wages residual income amongst the best.
What Is Long-Term Disability Insurance?
Long-term disability insurance is a type of coverage that provides financial support for an extended period when you’re unable to work due to injury or illness. Benefits typically begin after a waiting period, which can range from 90 days to a year, and last for several years or until retirement age, depending on the individual disability insurance policy.
Long-term disability insurance is essential for protecting your financial future, as it can help cover your living expenses and maintain your standard of living while you’re unable to work.
What Does Long-Term Disability Insurance Cost?
The cost of long-term disability insurance varies depending on several factors, including your age, health history, occupation, coverage amount, elimination period and benefit periods. On average, you can expect to pay between 1% and 3% of your annual income for a long-term disability policy.
Also, your monthly coverage amount depends on the maximum monthly benefit. The higher the monthly benefit the greater the cost. Typical elimination period ranges is usually 90 days due to cost.
It’s crucial to work with an experienced insurance agent who can help you find the best policy at a competitive price, ensuring you receive the coverage you need without breaking the bank. Before you buy disability insurance online let the team at FHI to a proper needs analysis.
Statistics about Needing Disability Insurance
Disability insurance is essential for protecting your income in the event of an illness or injury that prevents you from working.
Here are some statistics that highlight the importance of having disability insurance:
- Probability of Needing disability benefits: According to the Social Security Administration, approximately 25% of 20-year-olds will experience a disability before reaching retirement age. This statistic underscores the importance of having disability insurance, as it can happen to anyone at any time.
- Length of disability: The Council for Disability Awareness states that the average long-term disability claim lasts about 34.6 months, which is nearly three years. Without disability insurance, it may be challenging to pay your monthly expenses during such an extended period without an income.
- Causes of disability: The leading causes of long-term disability claims are musculoskeletal disorders (29%), cancer (15%), and mental health issues (9%). Accidents and injuries account for only around 10% of long-term disability claims, illustrating that disabilities can arise from various sources, not just accidents.
- Lack of emergency savings: A 2021 Federal Reserve report found that nearly 25% of American adults have no emergency savings, and only 47% have enough savings to cover three months of expenses. Without disability insurance products, those with little to no emergency savings are at a higher risk of financial instability if they become disabled and cannot work. Don’t be stupid and start the application process.
- Social Security Disability Insurance (SSDI) limitations: Although SSDI provides some financial support for disabled individuals, the average monthly benefit is only around $1,277 (as of September 2021). This amount may not be sufficient to cover living expenses and maintain one’s standard of living.
In 2023, the landscape of disability insurance continues to evolve, and finding the best policy for your needs is more important than ever. Florida Healthcare Insurance is here to help you navigate the process and provide expert guidance on the top companies, coverage types, and policy features.
Whether you’re self-employed, don’t have group coverage, work in a high-risk occupation, or simply want to ensure your financial future is secure, our team can help you find the perfect disability insurance policy to meet your needs.
Contact us today to start exploring your options and secure the peace of mind you and your family deserve. For a disability insurance quote please give us a call at 954-282-6891 or contact us here:
Please note we do not work with the Berkshire life insurance company.